Punjab and Haryana HC extends stay on sale of PSPCL properties till March 13

PTC Web Desk: The Punjab and Haryana High Court has clarified that its interim order preventing the sale of assets belonging to Punjab State Power Corporation Limited (PSPCL) will remain effective until at least March 13, the next scheduled date of hearing.

The clarification was issued about a week after the court first restrained the power utility from disposing of its properties. A Division Bench reaffirmed that the interim protection will continue while the matter remains under judicial scrutiny.

The development comes in response to the Punjab Government’s application seeking to vacate the stay. The state submitted that the proposed land transfer forms part of a long-standing development policy introduced nearly 30 years ago, which has never been legally challenged. It further contended that PSPCL recently recorded a profit of Rs 6.215 crore, indicating that the corporation is not facing financial distress that would justify court intervention. These arguments were opposed by the petitioner’s counsel, Baltej Singh Sidhu.

Advocate General Maninderjit Singh Bedi, appearing for the state, argued before the Bench that the government was not “selling” the properties but transferring them for residential and commercial development purposes. He maintained that the initiative was aimed at promoting overall development in the state. The Advocate General also asserted that the petition is primarily based on a news report and lacks documentary evidence to establish that PSPCL is disposing of assets due to unpaid dues.

The court also considered the state’s objection to the maintainability of the Public Interest Litigation (PIL). Relying on various Supreme Court rulings, the government argued that the issue concerns a policy decision and does not fall within the scope of public interest litigation.

While leaving the question of maintainability open for further arguments, Chief Justice Sheel Nagu observed that the petition refers to alleged outstanding dues of around Rs 2,582.24 crore payable to PSPCL by different Punjab government departments. The plea claims that the growing liabilities have compelled the corporation to explore the sale of immovable assets to manage financial pressure.

Referring to established principles governing PILs, the Bench noted that if the claim regarding liabilities exceeding Rs 2,500 crore is found to be correct, the matter could prima facie involve issues of public interest.

The High Court directed the state government to submit a detailed, paragraph-wise response supported by relevant documents. It also asked the authorities to place on record material substantiating their claim that PSPCL’s financial condition remains sound. The Bench pointed out that the balance sheet cited by the state had neither been formally placed on record nor supported by an affidavit.

Until further directions, the interim stay on the disposal of PSPCL properties will remain in force.